Magnera (NYSE:MAGN – Get Free Report) and International Paper (NYSE:IP – Get Free Report) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.
Profitability
This table compares Magnera and International Paper’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Magnera | -6.97% | -10.62% | -3.97% |
| International Paper | 2.99% | 4.75% | 1.74% |
Risk & Volatility
Magnera has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500. Comparatively, International Paper has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Magnera | $1.31 billion | 0.55 | -$60.00 million | ($18.34) | -1.10 |
| International Paper | $18.62 billion | 1.48 | $557.00 million | $1.57 | 33.37 |
International Paper has higher revenue and earnings than Magnera. Magnera is trading at a lower price-to-earnings ratio than International Paper, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
76.9% of Magnera shares are owned by institutional investors. Comparatively, 81.9% of International Paper shares are owned by institutional investors. 2.3% of Magnera shares are owned by insiders. Comparatively, 0.6% of International Paper shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and price targets for Magnera and International Paper, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Magnera | 0 | 0 | 1 | 0 | 3.00 |
| International Paper | 1 | 3 | 5 | 1 | 2.60 |
Magnera currently has a consensus target price of $24.00, suggesting a potential upside of 19.05%. International Paper has a consensus target price of $54.86, suggesting a potential upside of 4.72%. Given Magnera’s stronger consensus rating and higher probable upside, analysts clearly believe Magnera is more favorable than International Paper.
Summary
International Paper beats Magnera on 11 of the 15 factors compared between the two stocks.
About Magnera
Magnera’s purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera’s solutions propel our customers’ goals forward and solve end-users’ problems, every day.
About International Paper
International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others. It sells its products directly to end users and converters, as well as through agents, resellers, and distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.
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